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l IIIII 11111111111111111111111111 11111 III IIIII IIlI IIII <br />a3ea teoniiittNte es:zx etrfti reu tlettLSe <br />2 of ~ R 21.00 D 0.00 N 0.00 tXItiREC ftONTROSE CO <br />3. SpgsLal Rights of Lessee. In consideration of payment of royaftiees, when and as due <br />• hereunder, in addition to whatever rights Lessee may have by implication of law hereunder, Lessor <br />specifically grants to Lessee the following exclusive rights ("Rights': <br />(a) to drill, take core samples, survey, map and otherwise evaluate the Coal, and <br />to perform environmental and cultural resource studies, all without liability, except for the destruction <br />of growing crops and field improvements, and, except for the removal of ail debris and cleanup of the <br />Property that was necessitated by activities referred to above. <br />(b) to mina, extract, remove, process, own, marital or otherwise use the Coal, <br />including mining by the strip and/or any other methods now or hereafter in existence, without any <br />liability to Lessor for any current or future damages (including damage or loss to other minerals or <br />strata) to Lessor's estate; <br />(c) of free access to, in, from and across the Property and the Coal with any <br />persons, tools, machinery, and appliances, and also the right to insiaff, maintain, use and change <br />buildings, tipples, railroad facilities, conveyors, roads, haulage ways of all kinds, pumping stations, <br />pipelines, powedines, ditches, storage facilities, substations, excavations, pits, openings, stockpiles, <br />mine refuse disposal areas, drains, dams, ponds, natural and/or artificial water courses, and any <br />other facility, and to undertake any other thing or use necessary or convenient for exercising the <br />Rights otherwise specified in this Section 3, all with respect to the mining of the Coal and with respect <br />to the mining of other coal on other lands situated in the same township(s) in which the Property is <br />situated, or any township contiguous to said township(s); <br />(d) to use and to remove sand, gravel and scoria on the Property, but not to sell <br />• such off the mine property; and <br />(e) to use water rights appurtenant to the Property (e.g. springs, wells, private <br />ditches, etc.) as is necessary and convenient for Lessee. Lessee agrees to use only the quantity of <br />Lessor's water needed to reclaim Lessor's property, not to exceed 50 shares of Lessor's ownership <br />of the Colorado Cooperative Oitch Company. For the use of water and other considerations, Lessee <br />shall pay Lessor the annual water assessment and an amount per share per year as spelled out in <br />the Lease for up to 50 shares of C.C. Water Stodc adualty used beginning in the year Lessee starts <br />using Lessor's water shares. Lessor will continue to use remainder of his ditch water on other parts <br />of Lessor's farm. Lessor warrants that it owns such water rights and may allow Lessee to use such <br />water, however, Lessee shall in no event acquire ownership of any water rights of Lessor. Lessor <br />may use the surface of the Property for farming or any other use until Lessee elects to exercise its <br />Rights stated above. If Lessee, in fulfillment of its legal obligations to reclaim mine lands, undertakes <br />farming activity on any portion of the Property, the Lessee will cause the Property to be planted as <br />necessary, and may contract with Lessor, if economically feasible, to farm the Property to the <br />Lessee's specifications. Lessee agrees to cooperate with Lessor an choice of reclamation crops. <br />However, it is expressly understood that final crop selection for reGamation must be approved by the <br />Colorado Division of Minerals and Geology. No provision of this Lease shall be construed to deprive <br />Lessee of the exclusive right to determine the uses to which the Property is to be put after mining, <br />or the crops, if any, to be raised, or the methods to be employed and the costs to be incurred as part <br />of such after-mining uses. <br />(f) Before Lessee commences to exercise the Rights specified in 3(b) above, <br />Lessor may remove from the Property at Lessors expense any buildings, structures or other personal <br />2 ~g,~ <br />